Losing the Brand

Published by James June 28th, 2006 in Business Model, Life

In the absence of a Peet’s in Sausalito I have been reduced to drinking Starbucks again. (yes, life is hard)

After a weeks worth of terrible lattes and drips, I have started to think….. Was Strabucks Peets, before Peet’s was Peet’s? Or has Starbucks always been this bad?

I think there is definitely something to be said about growth and keeping your brand. Starbucks just got too big, ruled by margins and the stock price. The only way to keep the growth multiples and to trade at a 50+ P/E is to put one on every corner.

The brand suffers but I guess to a public company it only matters to the point that people stop drinking it. Coffee is a drug, it is hard to stop drinking it. In fact, it will take years, and many more silly green awnings will go up all over the world.

I was almost to Vacaville before my hands stopped shaking. I pulled into the Outlet Mall and saw a Starbucks; just the sight of that green awning made my heart stop racing and my breathing slow. An oasis of quiet and calm with espresso and baked goods awaited me. I could get a mocha if I wanted. I didn’t have to worry about fitting into my wedding dress anymore, did I? I could eat muffins until I popped every button.

Note to Peet’s: Keep the brand, tell the money managers to take their money somewhere else.